subject: Applications for refinancing reaches. The highest in 15 months [print this page] The rush for this refinancing is evident from the simple illustration given below, using a numerical example:
"Suppose a person purchased a home for $200,000 using mortgage loan in 2008 at a rate of 6.5%, the monthly installments stands at $1,264 every month. If the person refinances it now, at the current rate of 4.5%, the monthly installments decline to $1,013. This means the person will actually be saving $251.00 per month, which will add up to $84, 336 saving at the end of the mortgage! This is definitely a huge savings for the consumers and this explains why they are all going for refinancing."
This craze for refinancing will continue for some time, because it seems that the housing market will not recover soon, which will force the mortgage rates to be at lower levels. Tracing further back, the housing market will not recover soon, because of the fact that the number of foreclosures are increasing and the banks and lenders are offering heavy discounts on the preoccupied homes, which they repossessed because of foreclosures, so they can empty their inventories soon. As a result, the prospective homebuyers are making profits and they are looking for repossessed properties instead of building new homes.
For the latest news and the most updated listings of foreclosures for sale, visit ForeclosureDataBank.com.
Applications for refinancing reaches. The highest in 15 months
